Catering for growth

Migration is continuing its record-breaking run. For the 16th consecutive month, the country's annual net gain of migrants has risen.

Statistics New Zealand's latest figures show a record net gain of 6300 migrants in November 2015, contributing to the total of 63,700 migrants in the year to November 2015.

The numbers are a combination of more arrivals (including many New Zealanders returning from Australia) and fewer departures (notably, fewer Kiwis heading across the Tasman).

While almost half of new migrants (India and China lead the charge) settle in Auckland, the figures show Otago is steadily picking up numbers and now has the highest rate of increase since 1992 (the first year for which figures are available).

In November 2015, Otago gained a net 124 migrants, which contributed to the province's annual net gain (to November 2015) of 1465 migrants. In the previous year (to November 2014) it gained a net 1347 migrants.

Almost half of Otago migrants go to Dunedin and half to Queenstown Lakes, while lower numbers settle in the Waitaki, Central Otago and Clutha districts.

There can be little doubt the quality of life in the South is a major attraction for many choosing to settle here.

Innovative businesses are attracting skilled workers from outside their areas, and other regional employment schemes are aiming to do the same - as well as creating opportunities to retain locals.

It is worth noting the Government's scheme to encourage new and skilled migrants to the regions only came into effect at the beginning of November.

The incentives (including giving skilled workers more points towards residency if they take jobs or set up businesses in the regions) can be expected to increase our migrant numbers, although it remains to see how appealing those lures are in reality.

Compare Otago's November net gain of 124 migrants with Auckland's 3010, and the size of the challenge to ‘‘reroute'' those people becomes obvious.

Migrants tend to settle where large immigrant communities are already based, and where they see business and employment opportunities.

The new residency incentives are strong, but there is no guarantee those who have gone to the regions to gain points under the scheme will not leave for Auckland at the first opportunity.

At the moment, the biggest reason for settling outside Auckland is housing availability and affordability - yet similar problems exist in the likes of the Queenstown Lakes district, and Dunedin has issues, too.

We are currently scrambling to find suitable state accommodation for our first influx of refugees, and private property prices are going up as a result of growing demand from the relatively small number of new residents to Dunedin.

This is a boom time for real estate firms and sellers, but it is already creating headaches for first-time home buyers.

Investment opportunities for outsiders - particularly in residential housing - could be something of a double-edged sword, too. A fine balance is required.

While national and civic leaders are embracing the latest migration statistics, our biggest problem will be if we fail to plan - and provide - for that growth.

As Enterprise Dunedin begins a big marketing push to attract Aucklanders south, we must learn from the problems of our biggest city and resort neighbour if we are to be both willing and able to open our arms to new residents, to reap the economic and social benefits, but not disadvantage our local population or the most vulnerable.

We may have turned the migration tide, but we need a steady hand on the tiller if it is to be all plain sailing.

 

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